Neuronetics Reports $34.5 Million Revenue with 8% Growth, Net Loss Improves

Neuronetics, Inc. reported a total revenue of $34.5 million for the three months ended March 31, 2026, marking an increase of 8% from $32.0 million in the same period of the previous year. The growth was primarily driven by a 15% rise in clinic revenue, which reached $21.5 million, attributed to contributions from clinics acquired through the company's acquisition of Greenbrook. However, treatment session revenue saw a decline, decreasing to $9.1 million from $9.6 million year-over-year. The company incurred a net loss of $10.8 million for the quarter, an improvement from the $12.7 million loss reported in the prior year.

In terms of operational metrics, Neuronetics experienced a decrease in total operating expenses, which fell to $25.1 million from $26.8 million, reflecting cost efficiencies in sales and marketing. The gross profit for the quarter was $16.2 million, resulting in a gross margin of 46.9%, down from 49.2% in the previous year, primarily due to the revenue mix within the clinic revenue segment. The company’s cash and cash equivalents decreased to $13.2 million as of March 31, 2026, down from $28.1 million at the end of 2025, while the accumulated deficit increased to $469.6 million.

Strategically, Neuronetics continues to focus on expanding its market presence through its acquisition of Greenbrook, which has allowed the company to derive revenue directly from its treatment centers. The company operates in two segments: medical devices and clinic services, with the latter contributing significantly to its revenue. As of March 31, 2026, Neuronetics had 15 treatment centers across the U.S. and plans to enhance its sales and customer support team to further penetrate the market.

The company’s financial position remains under scrutiny, particularly regarding its compliance with financial covenants under its credit facility. As of March 31, 2026, Neuronetics had $65 million in borrowings outstanding, with a final maturity in July 2029. The company amended its credit arrangement in March 2026 to modify revenue covenants through December 2026 and liquidity covenants through September 2027. However, there is substantial doubt about the company's ability to continue as a going concern if it fails to meet its minimum revenue covenant by March 31, 2027.

Looking ahead, Neuronetics aims to improve its revenue cycle management, introduce new treatment options, and optimize its product mix to meet liquidity needs and revenue targets. The company remains focused on leveraging synergies from its acquisition of Greenbrook while navigating the challenges posed by market conditions and operational costs.